China's Fosun raises over $1 billion in share sale

PrudenceHo

HONG KONG-- Fosun International Ltd., the Hong Kong arm of the Shanghai conglomerate, is raising about 9.3 billion Hong Kong dollars (US$1.2 billion) from a share sale, with some of the proceeds going toward more acquisitions.

The Hong Kong-listed Fosun said Tuesday it would place 465 million shares with investors at a price of HK$20 each, representing a 4.53% discount to its last closing price. The shares represent 6.21% of the company's enlarged share capital.

Fosun, which has acquired everything from French resort operator Club Med to New York City's One Chase Manhattan Plaza office building in recent years, is using the proceeds for potential acquisitions in the insurance sector. Trading in Fosun's shares, which was suspended Monday, will resume Tuesday.

Earlier this month, Fosun International said it would spend at least $1.84 billion to acquire the 80% of U.S. insurer Ironshore Inc. it doesn't already own.

Fosun International, which bought Portugal's largest insurer last year and is in talks to buy an Israeli insurer, is planning to spend $2.4 billion to buy five insurers in the U.S., Europe and Asia this year, its chief executive, Liang Xinjun, said in an interview in March. Fosun has also been investing heavily in assets overseas that appeal to China's affluent, with the Club Med acquisition as well as the purchase of a stake in Canadian circus firm Cirque du Soleil.

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